Private Intermediary Innovation and Market Liquidity: Evidence from the Pink Sheets®Market

摘要: In 2007, Pink Sheets LLC assigned each Sheets® company to a disclosure tier and on its website affixed colorful graphic stock symbol signifying the company's public level. This unique innovation allows us investigate impact of increased salience practices liquidity. Using difference-in-difference design, we find evidence that firms classified into Current Information category experienced an increase in liquidity while No decrease liquidity, both relative other unclassified over-the-counter firms. suggests increases via assignment tiers affect investors' attention, leading changes trading behavior ultimately translate changes. We also provide some investors anticipated resulting because returns around key event date up release are positively associated with subsequent [ABSTRACT FROM AUTHOR]